Posted on 12/16/2014 9:55:53 AM PST by Star Traveler
The price of oil has fallen by nearly half in just six months, a surprising and steep plunge that has analysts arguing over whether this is a good or bad thing.
The price of oil has fallen by nearly half in just six months, a surprising and steep plunge that has consumers cheering, producers howling and economists wringing their hands over whether this is a good or bad thing.
The price of a barrel of oil is just under $56, down from a summer high of $107, and lower than at any time since the US was still in recession in the spring of 2009.
So what’s going on? A global imbalance of supply and demand that is rippling across the world economy, for better and worse.
(Excerpt) Read more at theguardian.com ...
most of the cost of gas and anything is due to your government regulations and taxes not the efficient private industry . you live in california and are blaming oil producers in another state . you live in practially a communist regime where the price of everything is skyrocketing , gas there in california is almost $2 more expensive per gallong than Here in Louisiana, a House is $400,000 in california, an operation is $50,000 everywhere because of government regulations not the free market which usually drops the price to near zero (evidence the dollar tree where every item is a $1)
And, what happens to that extra cash? Consumer spending. It's a plus for the entire economy.
The shale oil producers have done a great job of leveling the playing field and bringing us closer to energy independence. Prices will stabilize at fair market... they should have realized that.
We should be thanking Saudi Arabia for doing what Obama won’t do in stopping Iran!
Saudi Arabia’s oil war against Iran and Russia
http://nypost.com/2014/12/14/saudi-arabias-oil-war-against-iran-and-russia-2/
....what’s going on? A global imbalance of supply and demand....
Occam’s Razor applies.
My pet theory, QE stopped flowing, hedge funds and investment banks lost their free money to gamble and speculate on oil futures, price per barrel adjusted down to the actual demand curve.
With 98M not looking for jobs, a majority of Millenials not driving, and the actual cost of living for the average guy going up, the demand for oil will most likely continue dropping the price.
I bought diesel for $2.82 at Sam’s today
I have family members who own oil, natural gas, and coal concerns. This won’t affect them much at all, because they have enough wealth to see them through.
I also have family who are on the other end of the stick - working in oil fields, refineries, and on oil rigs.
They know that the work they do is cyclical, and always have something to fall back on. Every boom has a bust. Always.
From top to bottom, energy is a cyclical endeavor. Those who fail to plan are bound to fail.
OPEC isn’t killing anything. The Bakken Fields will still be there when prices rise again. This isn’t the first downturn and it won’t be the last.
What is temporarily bad for some people is going to be good for others. I hope it spurs technology in the direction of getting energy out of the ground in better/cheaper ways.
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